Pay increase when changing jobs

Question

I'm currently applying for jobs and seeking a career change. I have been asked to interview for a role at a new company, but the compensation package is very similar to my present one. I am ready for a change so I have to say I'm not afraid of a lateral move, BUT I want to know what percent increase should I strive for? What is a normal increase in salary when you change jobs? What increase makes it worth it to make the jump and move on to a new job? Thank you in advance for your feedback!

ROMICHA COOPER · Answer

I think it depends on your personal situation, are you striving for career growth, more pay, more or enhanced development and training opportunities? Really focus in on what your intent is and base your decision from that. Sometimes this can look like taking a step back in your career to take a steps forward in the future, or if you need to make that $ than how much more would make your life style comfortable and where does that amount fall within the market (i.e. is it reasonable). good luck!

Mindy Gellman · Answer

Hi there. I want to give you a different perspective then the above comment. I don’t necessarily disagree with the advice but a similar scenario happened to me and this is how I approached it.

In 2016  I had been working 2-1/2 years with a good company with great clients, and making decent money. But, boredom’s set in,  I felt unchallenged and now the little things that I use to overlook now started to bother me.  The partners of the company operated very much like a Mom & POP shop, even to the point where we got paid with paper checks (didn’t “trust” direct-deposit or anything cloud based).

Fall of 2016 I got a call from a headhunter asking me if I was interested in hearing about a job that they thought I would be perfect for ( they found me on LinkedIn).  I jumped at the chance, especially hearing that this company was an international firm (whom I knew of, with an excellent global rep).  Here’s the rub... The headhunter told me that the work I would be doing is equivalent to what I was currently doing  but because its a British owned company the title would be a step down to keep all of their titles uniform across their 5 global cos.

Here was my Job dilemma:
Current:  $$$ , No Growth / Lo Tech 
New:  $(10K less),  Growth, Mentoring Global Markets / all new Technology

I had to really think about all the reasons people quit their jobs. And yes, Sometimes it is for more money, but not for me. I took a big pay cut; however, I wholeheartedly believe I ended up richer with the choice I made.  I inherently have more experience and more knowledge now than if I had stayed put.

So as it goes in 2020, there is good news and bad news. I’ll start with the bad:
The bad news is that after working for over 3-1/2 years at this new company I was laid off due to cuts from Covid.  The good news is that if I didn’t leave that old job I would have never advanced my tech skills and elevated my marketability. I am in a much better place today for new employment than any of my previous coworker.  AND with hard work I showed my new company I was worth the $$, eventually getting my salary back up to where it was,  plus 15K.

Don’t feel the you need to necessarily have to ask for a uncomfortable amount of money, especially if it’s a lateral move. BUT, the new company needs to make it worth your while to quit. If they really want you, then you may have more to bargain with besides money.

All the best to you and good luck with whatever decision you make.

Annabel Koh · Answer

Great question - compensation negotiation can be tricky! Here are a few things to consider that might help:

a) Are you currently underpaid at your organization? If so, by how much?

b) What is the market rate for this role? (I would check Glassdoor for this and also check how much the Men are being paid in a similar role - We need to start reducing the pay gap between men and women!)

c) Moving laterally is fine - but it should not downplay the fact that you are coming into the role with year(s) of prior experience in the role; and hence justifies why you should be given an increment!

Personally, I would not take the lateral move if the package is the same as my existing  package - there's just no incentive (unless I dislike my current role, leader/ team, culture)!

I hope these help you work out a % on how much more you should ask for.  All the best!

Pay increase when changing jobs

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